Standard Chartered reported a 44 percent increase in pre-tax profit in the third quarter, becoming the youngest lender to benefit from lower loan fees as the global economy begins to recover from the coronavirus pandemic.
The underlying pre-tax profit for the emerging markets-focused bank rose to $ 1.08 billion, slightly above the bank’s forecast of $ 1.07 billion. However, it maintained its forecast of flat earnings growth in 2021, citing an “uneven” economic recovery in its main markets of Asia, Africa and the Middle East.
Bigger rival HSBC last week issued more optimistic predictions for an economic recovery this year, posting a 74 percent increase in earnings in the third quarter, helped by a release of $ 659 million from its reserves for potential bad debt.
StanChart’s loan loss provisions for the period July through September decreased to € 107 million.
“We returned to revenue growth in the third quarter and made further progress on our strategic priorities with strong performance in our financial markets and trading businesses and continued positive momentum in wealth management,” said Bill Winters, Chief Executive.
The bank’s entity in Asia, its largest market, saw pre-tax profit jump 13 percent to $ 927 million. Meanwhile, the Europe and America business posted a profit of $ 161 million in the third quarter, unchanged from a year earlier.
The London-based bank reported improved performance last year after preparing for economic shocks in 2020. It announced a $ 250 million share buyback and an interim dividend of 3 cents per share that totaled $ 94 million in August.
The Bank of England lifted a shareholder payout ban in July, judging the sector resilient enough to withstand further impacts of the pandemic.